Taxation of Life Policies

A recent ABI Circular puts forward the possibility (for consultation) of greater information being provided by insurers to policyholders to facilitate clearer and better understanding of when a return to the Inland Revenue need (or need not) be made.

Of course, the only statutory requirement to report gains (under section 521 ICTA 1988) is that imposed on the life office providing the policy on which the chargeable gain has arisen to report gains (through chargeable event certificates) to the Inland Revenue. The certificate does not even have to include the amount of the gain.

It is thought that by providing more information the chances of incorrect returns will fall dramatically.

This is not the first time this point has been addresses. An LIC circular on the same subject was issues in 1996.

Recommended

Bristol based IFA firm Kellands joined up with other financial services teams in a sponsored abseil to raise cash for the charity.The event which took place on the weekend of June 26 to 27, saw Kellands&#39 staff joined by teams from Axa Sun Life, Royal & SunAlliance and local radio station GWR FM to raise […]

Pensions guru Tony Reardon is transferring from Allied Dunbar to Zurich IFA, the IFA marketing arm of Zurich Financial Services.Reardon says: &#34My new role involves marketing to a wide range of IFAs, from small one-man bands to large employee-benefits consultants, both in the UK and overseas.&#34The IFA market is a change of focus. I&#39ve been […]

Investec Bank (UK) has launched two cash Isa accounts which pay IFAs 0.5 per cent commission.The Premier Tessa-Isa is available for investors transferring the balances of their matured Tessa&#39s, while the Premier Cash-Isa is for new savers.Both Isas pay a current variable rate of 6 per cent. Interest can be paid either on a monthly […]

Coventry Building Society is appointing former Conservative cabinet minister Gillian Shephard to its board of directors.Shephard is the MP for South West Norfolk and between 1992 and 1997 she served in various cabinet positions.She served as Secretary of State for Employment 1992-93, minister for agriculture fisheries and food 1993-94, Secretary of State for Education 1994-95 […]

As global investors continue to scour emerging markets through the lens of reform potential, India shines bright. Indeed, we think it can sparkle even brighter. We anticipate India’s self-imposed 10-year ‘policy holiday’ to turn into one of the most pro-growth and pro-investment policy calendars seen in Asia in years. The Indian electorate has engineered a historic verdict. We now have the strongest Indian government since 1984, with the pro-market Bharatiya Janata Party (BJP) achieving an absolute majority for the first time in the party’s history.

Newsletter

Latest from Money Marketing

Technology provider Moneyhub will now use Intelliflo’s application programming interface for its advisers. Integration onto the API will allow for advisers to access real-time information of client’s managed pensions and investments. Advisers will also be able to link investments they manage and see clients’ spending and savings patterns. The Big Interview: Moneyhub chief executive on […]

The past few years have seen a rapid rise in the number of fund managers linking with risk profilers to launch new ranges. Determining risk is a central part of the advice process. But risk-profiling tools have been subject to criticism over the wildly different asset allocations they produce and their lack of consistency when […]

AJ Bell is expanding its passive range to target a higher expected return for investors with a new global growth fund. AJ Bell launched its first range of own-brand funds last year with five risk-targeted multi-asset passive funds. The platform and Sipp provider said it has launched the Passive Global Growth fund in response to […]